If you don't understand the critical role Shorts play in the markets, you really shouldn't be trading.
People may want to look through this: http://www.interactivebrokers.com/en/trading/shortableStocks.php IB also explains: nitro
You said volatility is toast if there is no short selling. I know in France you can't short sell. However whenever i check on Yahoo.com and look at how their mkt did at least in my opinion it has equal volatility.
who agrees with tme? people want to short but they can't. nobody wants to buy either. therefore, we are going to be range bound.
What's the big deal. Market makers are exempt from the Short Sale rule ban?. You can get decent markets in Single Stock Futures (SSF). This will only open the door for more traders to use them. You don't have to change your strategies just use SSF instead.SSFs are an alternative way to invest and trade equity products. IB will have a webinar about them on Oct. 9th. If you can't wait they have it in their archives. You can also get more information by going to the website (www.onechicago.com) or you can contact me directly at hrd@onechicago.com. Thanks and good trading!
Vol will disapear on the other hand Kurtosis will explode. In other words will be range bound for days and then suddenly explode, then range bound, then suddenly explode. I promise the people who think this will help will regret it when they see the jumps that are coming.